A Single Taxpayer Has Adjusted Gross Income of $325,000 and Has

question 65

True/False

A single taxpayer has adjusted gross income of $325,000 and has total itemized deductions in various categories totaling $20,000.The taxpayer discovers some additional deductions for AGI.The extra deductions will not affect his itemized deductions.

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Definitions:

Regressive Taxes

Taxes that take a larger percentage of income from low-income earners than from high-income earners, inversely related to the taxpayer's ability to pay.

Flat Tax

A tax system with a constant marginal rate, usually applied to individual or corporate income.

Federal Reserve Board

The governing body of the Federal Reserve System, which is responsible for setting monetary policy in the United States.

Tools

Devices or implements, often hand-held, used to carry out a particular function or task.